10-Q: Grayscale Bitcoin Trust ETF Q1 2026 Financial Update
Quarterly Report
Grayscale Bitcoin Trust ETF reports a significant decrease in net assets for Q1 2026, primarily driven by Bitcoin price depreciation and share redemptions.
Summary
- The Grayscale Bitcoin Trust ETF (GBTC) reported a net decrease in net assets of $4,007,698,000 for the three months ended March 31, 2026.
- This decrease was primarily due to a net realized and unrealized loss on investment in Bitcoin of $3,138,125,000.
- The Trust's net assets decreased by 28% during the quarter, from $14,497,437,000 at December 31, 2025, to $10,489,739,000 at March 31, 2026.
- This decline was influenced by Bitcoin price depreciation from $87,549.41 per Bitcoin on December 31, 2025, to $67,805.29 per Bitcoin on March 31, 2026.
- The Trust also saw a net decrease in net assets from capital share transactions of $824,589,000, resulting from share redemptions exceeding share issuances.
- Sponsor's Fees amounted to $44,984,000 for the quarter.
Sentiment
Score: 3
Explanation: StockSavvy.ai views this filing as negative due to the substantial decrease in net assets and significant unrealized losses driven by Bitcoin's price depreciation, despite the operational effectiveness of the Trust's controls.
Positives
- The Trust continues to facilitate share creations and redemptions, providing liquidity for investors.
- The Sponsor continues to assume most of the Trust's ordinary expenses, with the Sponsors Fee being the primary ordinary expense.
- The Trust's disclosure controls and procedures were deemed effective as of the end of the reporting period.
Negatives
- Significant net decrease in net assets of $4,007,698,000 for the quarter.
- Substantial net realized and unrealized loss on investment in Bitcoin of $3,138,125,000.
- Net assets decreased by 28% during the quarter.
- Bitcoin price depreciation from $87,549.41 to $67,805.29 per Bitcoin during the quarter.
- Net decrease in net assets from capital share transactions of $824,589,000 due to redemptions outpacing creations.
- Sponsor's Fees for the quarter were $44,984,000.
Risks
- The Trust's net asset value and results of operations are directly affected by the price of Bitcoin, which has historically been highly volatile.
- The Trust may experience significant fluctuations in net asset value, including periods of substantial losses.
- Concentration in Bitcoin exposes the Trust to risks specific to Bitcoin and its supporting infrastructure, including market liquidity constraints and operational or cybersecurity risks associated with custody and transfer.
Future Outlook
The filing does not provide specific forward-looking financial guidance. However, it reiterates that the Trust's investment objective is for the value of its Shares to reflect the value of the Bitcoin held by the Trust, less expenses. The Trust's performance is inherently tied to the price movements of Bitcoin.
Management Comments
- The Trust is a passive entity managed and administered by the Sponsor and does not have any officers, directors or employees.
- As a passive investment vehicle, the Trust's investment objective is for the value of the Shares (based on Bitcoin per Share) to reflect the value of the Bitcoin held by the Trust, determined by reference to the Index Price, less the Trusts expenses and other liabilities.
- While an investment in the Shares is not a direct investment in Bitcoin, the Shares are designed to provide investors with a cost-effective and convenient way to gain investment exposure to Bitcoin.
- The Trust will not utilize leverage, derivatives or any similar arrangements in seeking to meet its investment objective.
- The Sponsor conducted an evaluation of the Trusts disclosure controls and procedures and concluded that they were effective as of the end of the period covered by this report.
Industry Context
StockSavvy.ai notes that the Grayscale Bitcoin Trust ETF's performance is directly correlated with the price of Bitcoin. The significant unrealized losses reported in this quarter reflect the broader market volatility experienced by Bitcoin and other digital assets. The Trust's structure as a passive holder of Bitcoin means its financial results are a direct mirror of Bitcoin's price action and the net effect of share creations and redemptions.
Comparison to Industry Standards
- The filing does not provide direct comparisons to other Bitcoin ETFs or similar investment vehicles in terms of performance metrics beyond the Trust's own historical data and NAV.
- The Trust's performance is benchmarked against the price of Bitcoin itself, as reflected in the Index Price and the Principal Market NAV.
- Competitor Bitcoin ETFs, such as those recently approved in the US, may offer different fee structures or operational models, but their performance is also fundamentally tied to Bitcoin's price.
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Board Restructuring | A Board of Managers for Grayscale Investments Sponsors, LLC was created on May 4, 2026, to manage and direct the Sponsor's affairs, under authority delegated by the board of Grayscale Investments. | 2026-05-04 | This change establishes a dedicated board for the Sponsor's day-to-day operations, potentially enhancing management focus and efficiency. |
| Management Reorganization | An internal corporate reorganization (Management Reorganization) was completed on October 22, 2025, resulting in Grayscale Investments, Inc. becoming the sole managing member of GSO and the sole member of the Sponsor. The Board of Directors of Grayscale Investments became responsible for managing the Sponsor. | 2025-10-22 | This reorganization aimed to streamline management and oversight of the Sponsor and its subsidiaries. |
Legal Proceedings
- There have been no material changes to the Legal Proceedings last reported in the Annual Report on Form 10-K for the year ended December 31, 2025.
Related Party Transactions
- The Trust pays a Sponsor's Fee to Grayscale Investments Sponsors, LLC (the Sponsor), calculated as 1.5% of the aggregate value of the Trust's assets, less liabilities. This fee accrues daily in U.S. dollars and is payable in Bitcoin.
- Digital Currency Group, Inc. (DCG), the indirect parent company of the Sponsor, had an authorization to purchase up to $1 billion worth of Shares of the Trust and other Grayscale investment products. From March 10, 2021, through June 30, 2022, DCG purchased $771.8 million worth of Shares. From July 1, 2022, through March 31, 2026, DCG had not purchased any Shares under this authorization.
- As of March 31, 2026, and December 31, 2025, 5,828 and 9,302 Shares of the Trust, respectively, were held by related parties of the Trust.
Stakeholder Impact
- Shareholders experienced a significant decrease in the Net Asset Value (NAV) per Share due to Bitcoin price depreciation and share redemptions.
- The Sponsor continues to manage the Trust's operations and assumes most ordinary expenses, impacting the overall cost structure for shareholders.
- Authorized Participants are involved in the creation and redemption of Shares, facilitating liquidity for investors.
Next Steps
- The Sponsor will continue to administer the Trust and prepare its reports.
- The Trust will continue to issue Shares in Baskets in exchange for Bitcoin deposits and redeem Shares from Authorized Participants.
- The Sponsor will continue to monitor the Trusts principal market for Bitcoin valuation.
Key Dates
| Date | Description |
|---|---|
| 2013-09-13 | Grayscale Bitcoin Trust ETF (the Trust) was formed. |
| 2013-09-25 | The Trust commenced operations. |
| 2015-03-25 | The Trust received notice that its Shares were qualified for public trading on the OTCQX Best Market. |
| 2018-01-22 | Record date for a 91-for-1 Share split. |
| 2018-01-26 | Effective date of a 91-for-1 Share split. |
| 2024-01-10 | The Trust's registration statement on Form S-3 was declared effective by the SEC, and the Sponsor authorized the commencement of a redemption program. |
| 2024-01-11 | Shares of the Trust began trading on NYSE Arca under the symbol GBTC (the Uplisting Date). |
| 2025-01-01 | Grayscale Operating, LLC (GSO) and Grayscale Investments Sponsors, LLC (GSIS) became co-sponsors of the Trust. |
| 2025-05-03 | GSIS became the sole remaining sponsor of the Trust. |
| 2025-10-22 | GSOIH consummated an internal corporate reorganization (the Management Reorganization). |
| 2026-03-31 | Quarterly period ended for the financial statements. |
| 2026-04-30 | Number of Shares of the registrant outstanding as of this date was 193,980,100. |
| 2026-05-04 | A Board of Managers of Grayscale Investments Sponsors, LLC was created. |
| 2026-05-05 | Date of the report signatures. |
Recommendation
holdThe filing indicates a significant decline in the Trust's net assets and NAV per share due to Bitcoin's price depreciation, which is a direct reflection of the underlying asset's performance. While the Trust's operations and controls remain effective, the negative performance driven by market volatility suggests a cautious approach. Given the inherent volatility of Bitcoin, a 'hold' recommendation is appropriate for existing investors, while new investors should carefully consider the risks associated with direct Bitcoin exposure.
Keywords
Grayscale Bitcoin Trust ETF, GBTC, Bitcoin, ETF, SEC Filing, 10-Q, Quarterly Report, Digital Assets, Cryptocurrency, Investment Fund, Net Asset Value, Market Risk
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